Edinburgh-based Wood Mackenzie underlined how much money can be made in the commodities business with news of a leap in earnings and the acquisition of a mining specialist that is thought to have cost more than £50m.

The oil and gas specialist said core earnings jumped by more than a third in 2007 as the firm, which owns huge databases covering the world's oil and gas provinces, profited from the clamour for information about energy.

With a fresh surge in oil and gas prices this year stoking demand, the company is on track to post further increases in profits in the current year.

Stephen Halliday, chief executive, was unconcerned that oil prices had come off record highs recently amid signs the slowdown in the global economy had affected demand for energy.

The firm was benefiting from a fundamental shift in the supply-and-demand equation affecting commodities industries. Globalisation and the rise of countries like Brazil, China and India, with their huge energy-hungry populations, has changed the rules of the game for energy and commodity markets.

"Both in energy and mining and metals, businesses face structural issues and challenges on a five-to-ten-year view."

Wood Mac's prospects appeared bright enough last October for London private equity firm Candover to increase its holding in the firm from 43% to 67% in a deal that generated windfalls of around £50m for shareholders including directors and staff.

After buying two consultancies specialising in the coal industry last year, Wood Mac has returned to the acquisition trail by acquiring a privately-owned Surrey-based mining and metals operation, Brook Hunt.

While details of the transaction were not revealed, sources said the deal had cost Wood Mac around £50m, including what appears to be a huge premium for goodwill.

Accounts for Brook Hunt for calendar 2007 obtained by The Herald show the firm grew pre-tax profits 73% to £2.4m.

The directors noted there had been a big increase in demand for access to its databases and consultancy services from banks and asset managers who were keen to invest in commodities, partly as a hedge against the weakness of the US dollar last year.

However, Brook Hunt had net assets of only £241,000 at the year-end.

Halliday declined to make any comment regarding the valuation attached to Brook Hunt.

He said: "This is a business with extremely strong proprietary information and a strong and growing recurring research revenue stream with high retention rates."

Wood Mac should be able to help Brook Hunt accelerate growth and to generate synergies from the enlarged business by, for example, cross-selling mining and metals services to oil and gas clients.

"We would absolutely look at this being earnings-accretive for us. We are very comfortable with the commercial terms," added Halliday, who said Wood Mac would consider bolt-on acquisitions in niches where it could find targets with the right assets and culture.

He confirmed that on current trends Wood Mac was likely to maintain a run of strong growth in annual profits in 2008.

In 2007, Wood Mack increased earnings before interest, depreciation and amortisation by 36% to £28.6m.

Revenues increased 30% to £79.7m, helped by the opening of new offices in Canada, South Africa, India and the USA.

The core energy client base increased by 23.2% and the retention rate for research offerings was 97%.

The success will have resulted in a significant increase in the fortunes of shareholders among the staff, including Halliday, who own 31% of the firm.

Having been owned by a succession of brokers and banks including NatWest, Wood Mac was bought from Deutsche Bank by management in a £26m deal backed by Bank of Scotland in 2001.

In 2005, Candover acquired a 43% stake in a deal that valued Wood Mac at £150m.

Halliday confirmed a stock market flotation was one option under discussion at Wood Mac for realising value, but said shareholders had no specific plans.